Real Estate Home Mortgages/Delayed closing

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Question
We moved 8 hours away from our previous home. We lived there many years and our mortgage was paid off. After moving, we listed our house with a local realtor. We had a bid within one month, with an acceptable offer. We signed a closing contract that was to occur on June 7. It had an option to be extended for an additional 30 days if needed. We were OK with that extention.
However, we still have not completed at the last day of July. The realtor told us the bank loan for the buyer was solid, but the buyer was being held delayed by the FHA paperwork. We are really nervous about the entire sale collapsing, but the realtor assures us everything is working. Nobody can offer us a firm closing date...other than "soon".  Who can we ask?

Answer
Gary,

In the aftermath of the mortgage meltdown of 2008-2009, lenders reduced the number of their employees substantially, and so have mortgage-related agencies such as the FHA. As you know by reading the papers, we are right now in the midst of a real estate boom which has caught most lenders - and the FHA - short-handed.

I suspect that that is what's holding up your escrow. Some lenders who offer very attractive interest rates, and who are swamped with applications as a result, are taking as much as 4-5 months to close loans.

I guess the only advice is "patience".


Best wishes,

Eric  
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

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Eric Forster

Expertise

Did your last mortgage broker or lender trick you into a messy situation which could cost you your home? I've been close to 30 years in the mortgage industry, and I've seen it all. Believe me, it is not pretty. As the owner of a mortgage company I am called frequently to testify as an expert witness in mortgage fraud cases and other cases where lenders did not fully disclose the terms of the loans they were offering to the borrowers. I have seen fraud being committed by borrowers - and by lenders. It's a tough world out there. And by the way - you are invited to visit my website, www.real-estate-expert-witness.net.

Experience

More than 25 years in loan production and underwriting in Southern California.

Organizations
Mortgage Bankers of America (Southern California Chapter)

Publications
Former columnist for AOL Financial Center and the author of a mortgage primer.

Education/Credentials
MBA (Finance)

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